This paper analyzes the impact of executives’ hometown identification on corporate environmental social responsibility (CESR) using a sample of Chinese A-share-listed companies from 2007 to 2018. It finds that: the CESR scores of companies are higher when executives work in their hometowns, indicating that executives’ hometown identification significantly improves the fulfillment of CESR; mechanism tests show that the above relationship is more significant in regions with superior environmental quality, indicating that executives take CESR more seriously in their hometowns more due to social pressure; further tests found that executive characteristics, such as executive type and age, have a regulating effect on this relationship. In addition, the nature of property rights of listed companies also affects executives’ hometown identification. Executives of state-owned enterprises have a stronger hometown identification, which enhances the fulfillment of CESR to a higher extent. In the context of the micro level of the enterprise, this paper provides positive evidence that an informal system, named as “hometown identity”, can enhance the performance of CESR and the pressure effect implicitly behind the social network, which enriches and expands the research related to CESR fulfillment.
Employees, as the most valuable assets and critical sources of competitive advantage in enterprises, are among the important stakeholders in enterprises. Employee social responsibility (ESR) has been a continually important research interest in the field of enterprise social responsibility. However, in the literature, few studies explore how personal features affect employee social responsibility. Thus, sampling China’s listed companies from 2006 to 2019, we investigate how the home bias of senior executives influences enterprises’ employee social responsibility. We identify home bias based on whether a chairperson’s or CEO’s hometown matches the firm’s registration place. Three main results are obtained. First, the home bias of both CEOs and chairpersons can improve the corporate fulfillment of employee social responsibility. Second, further cost-benefit analysis shows that this result is due to not only identification but also benefit exchange. Although senior executives’ home bias significantly decreases employee turnover rate, enterprises absorb more employment, which significantly increases their redundant personnel costs. Therefore, firms should balance the potential benefits and costs incurred by home bias via trade-off. Third, in firms facing less market competition, firms with more governmental subsidies or state-owned firms, senior executives’ home bias has a more significant promoting effect on the fulfillment of ESR, supporting the view of benefit exchange. Accordingly, by extending theories on the effects of senior executives’ home bias and enriching the ESR literature, this paper has important practical value, our findings can guide and promote firms to perform ESR while actively complying with a national policy for stabilizing employment and ensuring people’s well-being.
The majority of insurance investment funds are derived from policy liability debt funds. It differs from other institutional investors in a number of ways, including investment size, horizon, duration, risk, and so on. However, only a small portion of the extant literature focuses on in-depth and extensive analysis of Insurance Institutional Investors’ holdings (IIIs). This study analyses the impact of shareholding by insurance institutions on the value of Shanghai and Shenzhen A-share listed companies in China’s capital market. The paper offers three major contributions. First, we discovered that long-term equity-holding IIIs have both value selection and value creation functions. Second, the value creation function becomes more significant among long-term stock-holding IIIs with an increase in the period during which they retain the company’s shares; Third, fast-in and fast-out (FIFO) IIIs have a value-inhibiting effect on the held company and serve a value selection role, rather than a value creation function. This study provides more insight on the lack of academic interest in insurance institutions and serves as a foundation and reference for the design of regulatory policies for insurance institutions’ involvement in stock markets. It also gives empirical evidence for corporations to accurately analyze shareholding by insurance institutions. Furthermore, since this study concentrates on China’s capital market, it can serve as a benchmark for other nations, particularly, those designated as developing market economies.
This paper investigates optimal reinsurance strategies for an insurer which cedes the insured risk to multiple reinsurers. Assume that the insurer and every reinsurer apply the coherent risk measures. Then, we find out the necessary and sufficient conditions for the reinsurance market to achieve Pareto optimum; that is, every ceded-loss function and the retention function are in the form of “multiple layers reinsurance.”
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